‘jeopardy!’: How Much Taxes Does Amy Schneider Have to Pay?
Only a small percentage of those who compete on “Jeopardy!” do so for the money. However, we have to wonder what it’s like to walk away with thousands of dollars after participating in a grueling trivia competition.
Or, in the case of current “Jeopardy!” champion Amy Schneider, how it feels to walk away with more than a million dollars. She has currently won 33 games and amassed a total of $1.1 million in wins. If she keeps going in the same direction, she has a good chance of adding even more money to her already substantial winnings.
Be paid in taxes to the state and federal governments, which is a significant amount of money. There’s a common misconception that game show winners can only take a fraction of their winnings home since they are subject to taxes. CNBC, on the other hand, has calculated exactly how much Schneider will owe if she returns home tomorrow with only the $1,111,800 she currently has in her account.
She’ll be hit with a significant tax bill because the cash she’s received from the show is considered regular income, according to Megan Gorman, an attorney and managing partner at Chequers Financial Management in San Francisco, who spoke to the publication. “She will be subject to some of the highest tax rates in the United States as a result of this income.”
What is the exact amount that Amy Schneider, the winner of ‘Jeopardy!,’ will pay?
Another factor contributing to the fact that the “Jeopardy!” champion has such a high tax rate is the fact that she currently resides and works in the state of California. As a result of being in the top tax bracket in California, which has one of the nation’s highest tax rates, Gorman estimates that Schneider might be subject to a 13.3 percent tax rate in the state. In addition, she will be subject to a federal tax rate of 37 percent.
According to Schneider’s current “Jeopardy!” victories, she owes “more than $375,000 in federal taxes and about $140,000 in California taxes, according to current tax tables,” according to the Los Angeles Times. If Schneider does not win tomorrow, she will be extremely fortunate to walk away with $500,000 in winnings. That’s only half of the one million dollars she won on the game show in the first place.
“It’s a pretty onerous win from a tax standpoint,” Gorman said in an interview with CNBC. Although winning a million dollars on a game show is a fantastic accomplishment, “it’s fairly astounding how much of it goes to taxes,” says the winner of the game show.
Gorman went on to say that seeking expert assistance with Schneider’s taxes this year is necessary. The game show “Jeopardy!” does not automatically remove a part of the winnings to cover tax obligations. As a result, the contestant is responsible for sending the correct amount to the IRS on their own.
According to Gorman, “I hope Amy is dealing with her tax professional right now to go forward with getting the correct guidance.”
We hope so as well. Her tax situation will almost certainly become more convoluted as she wins and earns more money. What we don’t know is how far Schneider’s winning streak on “Jeopardy!” will lead her. However, it is hoped that she has not made any large one-million-dollar purchases as of yet.